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2018 (12) TMI 312 - AT - Income TaxSet off the business losses against the capital gains - option v/s mandation - reliance on provisions of section 71 - The assessee in the return of income did not set off the business loss against the short term capital gain. However, after adjusting the capital gains of the year against the brought forward short term capital loss and claiming deduction u/s 80 returned the taxable income at ‘nil’ with carry forward business loss Held that:- A perusal of the above Legislative history reveals that the assessee has always been given an option to set off his losses against the income from capital gains. However, as per the provisions of sub section (3) of section 71, the assessee is not allowed to set off capital loss against income under any other head. The above view is fortified by the decision of ‘Coated Fabrics (P) Ltd. vs JCIT’ [2006 (1) TMI 228 - ITAT PUNE-A]. No justification on the part of the lower authorities in making the impugned adjustments and, therefore, the same are set aside. The Assessing officer is directed to accept the returned income /computation of the assessee, as such. - Decided in favour of assessee.
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